Unit 1.6 Multinational Companies (MNCs) IB Business PDF

Unit 1.6 Multinational Companies (MNCs) Ms Diz IB Business Multinational Companies (MNC’s) In this chapter you will learn how to: Evaluate the impact of MNC’s on the host country. TOK Discussion...

Unit 1.6 Multinational Companies (MNCs) Ms Diz IB Business Multinational Companies (MNC’s) In this chapter you will learn how to: Evaluate the impact of MNC’s on the host country. TOK Discussion 2 ○ Globalization ○ Multinational Companies ○ The impact of MNCs on the host countries 3 Globalization Impact of Globalization Globalization: The process by which the worlds regional economies are becoming one integrated global unit. Globalization has led to: Increased Skills Transfer Competition Greater Brand Closer Awareness Collaboration ○ Globalization ○ Multinational Companies ○ The impact of MNCs on the host countries 6 Multinational Companies IB EXAM Question A business that operates in more than one country and is legally registered in more than one country Multinational Companies have grown due to: - Improved Communications - Dismantling of Trade Barriers - Deregulation of the world’s financial markets - Increasing Economic and Political Power of Multinational Companies ○ Globalization ○ Multinational Companies ○ The impact of MNCs on the host countries 8 The Impact of MNC’s on Host Countries IB EXAM Question Advantages for Host Country Disadvantages for Host Country Economic Growth Profits get Repatriated New Ideas Loss of Cultural Identity Skills Transfer Brain Drain More Choice of Products Loss of Market Share Short-term Infrastructure Projects Short term Plans TOK Discussion 1. As businesses grow internationally and become multinational, how do their methods of knowing change (knowing their customers, their markets, their business environment, their competitors)? 2. How can we know about the different impacts that MNC’s may have on their host countries? 3. Are the terms “international”, “multinational”, and “global” interchangeable? If there is a difference between them, who should give the ultimate authoritative definition? 10